National Minimum Wage reminder for summer staff
We would like to remind any students and seasonal staff that work part time, for example in a summer job, to ensure they are being paid the National Minimum Wage (NMW). All workers are legally entitled to be paid the NMW. This includes temporary seasonal staff, who often work short-term contracts in bars, hotels, shops and warehouses over the summer.
HMRC helped some 155,000 people recover more than £16 million in pay which was due to them. HMRC is reminding workers to check their hourly rate ... read more
Inheritance Tax Business Relief
There are a number of reliefs available that can reduce liability to IHT if you inherit the estate of someone who has died. One of these reliefs is known as Business Relief and is a valuable tax relief for taxpayers with business interests, offering either 50% or 100% relief from IHT on the value of the business assets if certain conditions are met.
100% Business Relief can be claimed on a business or interest in a business or on shares held in an unlisted company.
50% Business Relief can be ... read more
Tax if you divorce or separate
If you are a couple that is getting separated or divorced, apart from the emotional stress, there are also tax issues that can have significant implications. Whilst this is unlikely to be uppermost in your mind it is important that the tax consequences of the break-up are carefully considered.
Whilst Income Tax does not automatically cause an issue for separating couples as it is an individually assessed tax, there are other taxes that need to be considered. For example, when a couple are ... read more
Income excluded from a property business
HMRC publishes a list of income streams that are excluded from a UK property business. The list includes fishing concerns, hotels and guest houses, tied premises, caravan sites, lodgers and tenants in your own home, extra services to tenants and letting surplus trade accommodation. In most cases the income from these activities will be taxed as income of a trade and not as property income.
In addition, there are certain receipts that can arise out of the use of land, and which are specifically ... read more
Rent-a-room: letting as office accommodation
The rent-a-room scheme is a set of special rules designed to help homeowners who rent-a-room in their home. The current tax-free threshold of £7,500 per year has been in place since 6 April 2016. Homeowners using this scheme should ensure that rents received from lodgers during the tax year do not exceed £7,500.
The tax exemption is automatic if you earn less than £7,500 from qualifying rentals. The relief applies only to the letting of furnished accommodation and applies when a bedroom is ... read more
Taxis: what is liable to VAT
HMRC sets out specific guidance regarding the application of VAT if you are in the taxi and private hire car trade. VAT Notice 700/25 - How VAT applies to taxis and private hire cars - applies.
Private hire cars include mini-cabs. The notice is relevant if you are:
a driver who owns or rents a vehicle (an owner driver)
the owner of a business which operates a number of vehicles
operating a taxi association
The fares a driver charges to their passengers for taxi or private hire journeys ... read more
Updated working safely guidance to apply from 19 July 2021
With England having moved to step 4 of the roadmap out of lockdown from 19 July 2021, the government has published updated guidance on working safely during coronavirus. The guidance, which is to be kept under review, has been re-categorised into the following six sector-specific guides:
construction and outdoor work
events and attractions
hotels and guest accommodation
offices, factories and labs
restaurants, pubs, bars, nightclubs and takeaway services
shops, branches and close contact ... read more
New COVID-19 vaccination guidance for employers
Public Health England has published a new guide for employers on COVID-19 vaccination. The guide encourages employers to support the government’s COVID-19 vaccination programme and it covers the following subjects:
why supporting vaccination of employees against COVID-19 is important
what employers can do to support the vaccination of their workforce
resources to help employers promote vaccination to their workforce.
In particular, the guide links to the previously published employer ... read more
Card security update
VISA have issued information regarding changes to card processing security from September 2021. The idea is to reduce online fraud.
The changes will apply across Europe. A key part of the new security arrangements is the requirement for Strong Customer Authentication (SCA). This means you may be asked to provide additional information when making some purchases.
In their update VISA said:
Banks are introducing these new security measures for Visa cardholders who shop online or make ... read more
Stage 4 COVID roadmap implemented 19th July
The Prime Minister, Boris Johnson, spoke to the nation and confirmed that the vaccines have significantly weakened the link between coronavirus cases and hospitalisations and deaths. This has allowed the government to confirm that many COVID restrictions will be lifted in England on 19 July, known as Freedom Day.
The main changes will see an end to social distancing, facemasks will no longer be mandatory, and the opening of all venues currently closed with no capacity limits. The Prime ... read more